Loan Default Scams
BEWARE: Many companies advertise debt relief services for student loan borrowers that promise to help eliminate or greatly reduce your debt or monthly payment AND CHARGE A FEE UP FRONT for their service. They can’t deliver on all of their promises, and the services they can offer are often available elsewhere FREE OF CHARGE. Experts in the field, such as the servicer, the U.S. Department of Education, or the guarantor of your loans, can offer advice and help you understand your options – WITHOUT CHARGING YOU A FEE.
If you signed a student loan agreement, you are responsible for making timely payment and providing up to date contact information to your lender and/or servicer. If your loan(s) become delinquent to the point of default, you may be at risk of wage garnishment, offset of income tax refunds or other collection action. If you are in a situation where you are struggling with your student loan repayment, the most important tool you have is communication.
Contact your loan holder to discuss what options you may have.